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Newfoundland and Labrador drivers pay the highest auto insurance premiums in Atlantic Canada and the Maritimes.  

That doesn’t mean that drivers here can't save more money on their car insurance. All you have to do is shop around online. Rate comparison sites like LowestRates.ca help drivers find the cheapest car insurance quotes available, quickly and easily.

Wondering how to get cheap car insurance in Newfoundland and Labrador? Enter your postal code now to begin a quote. We’ll find you the lowest rate and connect you with an insurance broker who will lock in your new policy. 

It only takes three minutes, it’s no-obligation, and it’s convenient. That’s why more and more drivers in Newfoundland are going online to get auto insurance quotes.

How comparing auto insurance quotes in Newfoundland and Labrador works. Hint: It’s free!

Insurance comparison sites like LowestRates.ca pull the cheapest, most competitive quotes from all the top car insurers in your area. All we need to get started are some basic details about your driving history. After you receive and select your quote, a professional insurance broker will lock in your rate with the insurer and help you get set up with your new policy. You'll be done in minutes.

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Who sets auto insurance rates in Newfoundland and Labrador?

In Newfoundland and Labrador, individual insurers set auto insurance rates, which are then regulated and approved by the Newfoundland and Labrador Board of Commissioners of Public Utilities. Newfoundland car insurance brokers and lenders then deliver these rates to their customers.

What factors determine auto insurance rates in Newfoundland and Labrador?

Auto insurance rates in N.L can be attributed to a number of factors. Before giving you an estimate, Newfoundland car insurance providers will look at several factors. However, Newfoundland and Labrador is unique in that the provincial government forbids insurers from using some factors to determine auto insurance premiums — factors that are standard criteria in most provinces. Here’s an example of the factors that determine your car insurance in N.L., and some that don’t. 

Factors that do impact your car insurance rates in Newfoundland and Labrador: 

Your driving history: Insurers like to see a lot of driving experience (typically eight years or so). They reward long-time drivers who are conviction and claims-free with lower rates. This factor also makes it harder for new drivers in Newfoundland who need car insurance to find affordable rates.

In addition, if you’ve been deemed a high risk driver and you need car insurance in Newfoundland, your driving history may become an obstacle to obtaining a cheaper rate. Click here to learn more about high risk car insurance quotes for Newfoundland drivers. 

Your postal code - Insurance companies also rely on postal code regions to price auto insurance. Some postal code regions pay more in insurance than others because customers within that region are more likely to file a claim. That includes situations such as theft, vandalism, and collisions. 

Your mileage: Insurance companies will ask you how many kilometres you drive each day. The longer your commute, the more time you spend on the road, which increases the probability that you’ll be involved in an accident.

Your car: Insurance companies have figured out a way to judge which car model is more likely to be involved in a collision, regardless of driver behaviour.

Newfoundland and Labrador is unique in that the provincial government forbids insurers from using some factors to determine auto insurance premiums — factors that are standard criteria in most provinces.

Factors that don’t impact your car insurance rates in Newfoundland and Labrador: 

Your age: Unlike other provinces, car insurance for young drivers in Newfoundland will not be more expensive than for other drivers.  Car insurance prices in Newfoundland are not tied to age, unlike the rest of Canada, where rates tend to drop off after age 25 and continue to fall through to age 30. 

This is why cheap car insurance for new drivers in Newfoundland can be easier to find than in other provinces. (Learn more about shopping for car insurance for students in Newfoundland.) 

This isn’t the only way your age can impact your car insurance rates. Adults between the ages of 50 and 70 get some of the lowest car insurance rates. If you belong to this demographic, you probably have a long history of being insured and you might even have bundled your home insurance policy with the same provider of your auto insurance.  After age 70, though, seniors in many Canadian provinces might see their rates begin to creep up. People in this age group are more statistically more likely to need to file a claim and need longer to recover from an injury. However, due to provincial policies, car insurance rates for seniors in Newfoundland will be no more expensive than residents of other ages. 

Your gender: In many provinces, your gender also plays a role in determining your auto insurance rates. Men are known to pay more than women for a variety of reasons. In Newfoundland and Labrador, however, insurance companies are not allowed to use this factor, so gender will not apply when calculating insurance rates. 

Your insurance history: Missed a car insurance payment? Insurance companies give preference to customers who always pay on time and have no gaps in their insurance history. This is why one of the best ways to gradually reduce your car insurance costs in Newfoundland is to make your payments on time, every month. 

However, it’s also important to note that in Newfoundland, a lapse in or absence of an insurance history won’t impact your rates. This applies except in the case of licence suspensions and traffic convictions. For example, cheap car insurance rates for new immigrants in Newfoundland may be easier to find than in other Canadian provinces. 

Other factors that cannot impact your car insurance rates in Newfoundland include; your marital status, the age of your car, accidents in which you were not at fault, being previously refused insurance by another company and being insured with the Facility Association (insurance pool funded by car insurance companies that specializes in covering high-risk drivers, i.e., the insurer of last resort). 

How much is car insurance in Newfoundland?

Car insurance is such a personalized product, that showing you the average price is actually misleading. This is because The average price isn’t always indicative of what you’ll actually end up getting charged. A lot of drivers who wind up on our site are looking for a car insurance calculator for Newfoundland insurance rates to instantly tell them how much they can expect to pay.

We recommend taking three minutes to complete a proper car insurance quote. Automobile insurance in Newfoundland is a highly personalized product, so a more thorough questionnaire will deliver a more accurate quote. On top of that, completing a quote on LowestRates.ca means you’ll be shown the best rates for car insurance in Newfoundland.

How do Newfoundland and Labrador auto insurance rates compare to other provinces?

Newfoundland and Labrador auto insurance premiums are currently the fourth highest in Canada. The table below illustrates the cost of car insurance in Newfoundland and how it compares to other provinces. 

Average auto insurance rates by province

ProvinceAverage Rates
Ontario$1,505
British Columbia$1,832
Alberta$1,316
Newfoundland & Labrador$1,168
Manitoba$1,140
Northwest Territories$978*
Nunavut$963*
Yukon$812*
Nova Scotia$891
Saskatchewan$1,235
New Brunswick$867
Prince Edward Island$816
Quebec$717

Source: Insurance Bureau of Canada, 2020

*2017 data

Why are insurance rates in Newfoundland and Labrador so high compared to the rest of Atlantic Canada?

At $1,168 a year, Newfoundland and Labrador drivers pay the fourth highest yearly premiums for auto insurance in the country.

The island province of only about 450,000 people is preceded by the more populous provinces of B.C., Ontario, and Alberta.

Here’s how car insurance rates in the rest of Atlantic Canada compares to the rates in Newfoundland and Labrador:

  • Nova Scotia pays 23% less
  • New Brunswick pays 26% less
  • P.E.I. pays 30% less

The main factor that insurance companies increase rates are claims. If an auto insurance company in Newfoundland has to pay out more than they’re taking in, that will trigger a rate increase for everyone insured by that company, not only for the driver who received the award. 

Auto insurance rates in Newfoundland have been continuously rising since 2005.

There are a number of forces in play in Newfoundland and Labrador that explain the province's issue with claims. For one, it’s not mandatory to buy accident benefits, which would normally pay for medical expenses. Next, injured drivers have the right to sue for pain and suffering, loss of income, and other damages stemming from the accident. Lawsuits cost insurance companies big time and drive premiums up for everyone else. Bodily injury claims are higher in Newfoundland in Labrador than they are in other provinces.

The province also leads the country in the number of uninsured drivers on the road. If you’re properly insured and you get into an accident with an uninsured driver, guess who foots the bill? That’s right: your insurance company.

The car insurance problem finally triggered a response from the province in 2018, with a slew of new regulations officially put into action at the start of 2020.

The new regulations aim to decrease auto insurance through a series of incentives and deterrents, including:

  • Pivoting towards a no-fault insurance system. This means that the insurance company for each driver involved in an accident will deal with their own insurance company, regardless of who’s at fault for causing the accident. (In the past, only the insurance company involving the at-fault driver would get involved.)
  • Doubling the deductible policyholders must pay in order to access pain and suffering rewards from $2,500 to $5,000.
  • Enforcing a limit of 120 days to tell your insurance company that you want to make a bodily injury claim.
  • Allowing auto insurance companies to sell usage-based auto insurance plans, where drivers only pay for as much insurance as they need.
  • Requiring auto insurance companies to offer a discount for installing winter tires.

How can I get cheap auto insurance in Newfoundland and Labrador?

There still ways to find savings on auto insurance in Newfoundland and Labrador:

  • Always pay your premiums on time.
  • Choose a vehicle with less susceptibility to theft.
  • Choose a vehicle with more safety and security features.
  • Maintain a good driving history — obey the rules of the road and avoid speeding tickets.
  • Understand and choose the right type of insurance coverage — only choose the coverage that you need.
  • Shop around for the best policy — online comparison sites like LowestRates.ca can help you find the policy that fits your needs.
  • Insure more than one vehicle with the same car insurance company in Newfoundland. 
  • Insure both your car and home with the same auto insurance company in Newfoundland. 

Finding affordable car insurance in Newfoundland doesn’t have to be a struggle. To reduce your bill even more, consider whether you really need additional coverages like collision or comprehensive. More on that later on, so keep reading.

Is auto insurance required in Newfoundland and Labrador?

Yes. The law requires motorists to carry insurance on their vehicle.

Which providers offer the cheapest insurance in Newfoundland and Labrador?

There isn’t one Newfoundland car insurance company that provides discount auto insurance to everyone who applies for a policy. Auto insurance companies don’t compete on price. Calculating the likelihood a driver is going to be involved in an accident is complex and requires insurance underwriters to weigh a lot of variables. Plus, insurance companies need to balance winning new business with having enough money to pay out claims to their current policyholders (they know to expect accidents to happen). 

But each insurance company weighs risk differently. The formula each one uses to calculate premiums are top secret and are never shared with competitors. That’s why it’s important to compare quotes: another insurer may view someone with your driving and insurance history and want to offer you insurance. 

How do you know if an insurance company wants your business? Because they’ll offer you a lower rate. The best way to see which ones favours you the most is to compare multiple quotes at once. 

Does my credit score impact my car insurance premium in Newfoundland and Labrador?

No, car insurance companies are banned from using credit scores to rate drivers in Newfoundland and Labrador. Ontario is the only other province to ban this practice outright.

Which types of insurance are available to drivers in Newfoundland and Labrador?

Here are the types of car insurance available in Newfoundland and Labrador:

  • No-fault coverage in Newfoundland - This type of coverage doesn’t mean that you can’t be found at fault. It does mean that you are required to deal with your insurance company first, for all claims, before bringing a suit. However, Newfoundland does allow a no-fault driver to sue an at-fault driver for additional damages that the mandatory accident benefits insurance does not cover. Newfoundland drivers are required to carry this type of insurance. 
  • Third party liability insurance in Newfoundland - Covers your liability if you’re involved in an accident where damage is caused to another person’s car. This type of coverage is mandatory in Newfoundland and Labrador. This type of insurance is mandatory in every province across Canada. 
  • Accident benefits coverage in Newfoundland - Pays for medical expenses for injuries sustained in a car accident. This coverage is not included in basic auto insurance policies in Newfoundland and Labrador. It must be purchased extra.  This type of insurance is required for drivers in Newfoundland. 
  • Uninsured motorist coverage in Newfoundland - This coverage pays for your medical costs and the repair or replacement of your property if you’re involved in a car accident. Since Newfoundland and Labrador has the highest number of uninsured drivers in Canada, this extra coverage might be a good idea.This type of insurance is mandatory in Newfoundland.  
  • Collision coverage in Newfoundland - Reimburses you if your car is damaged in a car accident. It will pay for your car to be replaced or repaired. It must be purchased in addition to your basic policy. This type of insurance is not mandatory in Newfoundland. 
  • Comprehensive coverage in Newfoundland - Pays for damage done to your car that was not caused by a collision, i.e., a fallen tree or hail. This can be purchased extra. This type of insurance is not mandatory in Newfoundland. 
  • Specified perils insurance in Newfoundland - Protects your property against the insurable risks that you specify in your insurance policy. If the risk isn’t in writing, you don’t have coverage for it.This kind of coverage can be purchased extra.This type of insurance is not mandatory in Newfoundland. 
  • All perils insurance in Newfoundland - A hybrid of collision and comprehensive policies. This can be purchased extra. Newfoundland drivers are not required to carry this type of car insurance. 

Some types of coverage which are available in other provinces are not available in Newfoundland, including direct compensation property damage insurance. 

What is the minimum requirement for auto insurance in Newfoundland and Labrador?

Newfoundland and Labrador residents are required to carry $200,000 in third-party liability insurance on their vehicles. Without the minimum amount of coverage, drivers can't register their cars.

Drivers in this province are also required to hold uninsured and unidentified insurance, which protects them if they're involved in an accident with an uninsured driver or a driver that can't be identified.

Unlike in many other provinces, accident benefits coverage isn't mandatory in Newfoundland, but it's recommended by the provincial government and can be bought from your insurer.

Are discounts available on car insurance in Newfoundland and Labrador?

Numerous discounts are available to drivers in Newfoundland and Labrador. Applying for discounts is a great way to lower your car insurance costs.

As of 2020, car insurance companies are legally required to offer a discount for installing winter tires. The amount they’re willing to discount is up to the insurance company’s discretion.

Here are some other discounts that are worth looking into:

  • Bundling auto and home insurance policies.
  • Taking a driver’s education course.
  • Installing an anti-theft device.
  • Enrolling in a telematics program, which grants your insurer the ability to monitor your driving via an app and award you discounts of up to 25% if you consistently display good driving habits (insurers are not allowed to penalize you, only offer you discounts).

What kind of auto insurance system does Newfoundland and Labrador have?

As of Jan. 2020, when it comes to property damage (damage to your car), each party involved in a collision has to deal with their own insurance company, regardless of who caused the accident. (In the past, only the insurance company of the at-fault driver got involved).

It’s not mandatory to buy accident benefits (in all other provinces, accident benefits are included in a basic policy).

When it comes to injuries, Newfoundland and Labrador operates under the tort system. This lets you sue an at-fault driver for your pain and suffering, wage losses, and other damages related to an accident.

What benefits are covered if I choose to buy accident benefits coverage?

If you buy accident benefits coverage in Newfoundland and Labrador and get into a car accident, here's what your benefits will include:

  • Funeral expense benefits: Up to $1,000.
  • Medical payments: Up to $25,000/person; time limit of 4 years.
  • Disability income benefits: Up to $140/week; 104 weeks for partial disability; lifetime for total disability; unpaid housekeeper $70/week, maximum 12 weeks.
  • Death benefits: Death of head of household $10,000, plus $1,000 to each dependent survivor after first; death of spouse $10,000; death of dependant $2,000.

What are the penalties for driving without insurance in Newfoundland and Labrador?

Newfoundland and Labrador have the most uninsured drivers in the country. And new regulations put into force in 2020 aim to punish uninsured drivers more severely.

If you're convicted of driving without insurance in Newfoundland and Labrador, you'll have to pay a fine that ranges from $2,000 to $4,000 for your first offence. The fine increases to a range of $3,000 to $5,000 for second and subsequent offences.

And there are other penalties that may accompany your fine. If you're charged for driving without insurance in Newfoundland and Labrador, you may also have your driver's licence suspended and your vehicle impounded for 90 days.

The financial safety net for uninsured drivers has also been taken away. In the past, drivers could file claims via the province’s fund for uninsured drivers. Now, drivers are personally responsible for paying for expenses stemming from accidents.

Also, insurance companies are now required to alert the Department of Motor Vehicles when a car insurance policy has been cancelled or allowed to lapse.

What is the minimum legal driving age in Newfoundland and Labrador?

You can begin the licensing process when you turn 16.

To earn your learner's licence in Newfoundland and Labrador, you first have to pass a road theory test and an eye vision test. Then you can hit the open road — as long as you're accompanied by a fully licensed driver. Remember, this supervising driver must sit in the front passenger seat and have a blood alcohol level of 0. You must stay in this licence level for 12 months, or 8 months if you complete an approved driver education course.

How do I get a novice licence in Newfoundland and Labrador?

To earn the next licence level, your novice licence, you must successfully complete a road test. You'll then hold your novice licence for 12 months and your BAC must always be 0 when you drive with this licence.

How do I get a full licence in Newfoundland and Labrador?

After holding your novice licence for 12 consecutive months, you may obtain your full Newfoundland and Labrador driver's licence.

Is usage-based insurance available to drivers in Newfoundland and Labrador?

Yes, as of 2020, usage-based auto insurance is now available to Newfoundland and Labrador drivers. Usage-based auto insurance allows you to pay for only as much insurance as you need.

Using a device that you install in your car, or an app, more commonly, your insurance company can determine your mileage with more accuracy.

Mileage is a big factor in calculating your insurance rate. The more time you spend on the road, the more likely you are to be in a car accident.

Are Newfoundland drivers allowed to carry digital proof of car insurance?

Yes. Since 2018, drivers in Newfoundland and Labrador have been allowed to carry digital proof of car insurance on their smartphones. You are responsible for making sure that your phone is charged if you are pulled over by police. For more information, contact your insurance company.

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